We've just started using Google Docs for collaborating on the writing of articles, blog posts, audio and video scripts, reports, etc. - anything that requires team work.
After about a week with the system I am very impressed. I suspect there will be many more reasons to like Docs, but here are the first three...
1. Sharing documents is very easy. Just add someone else's Google login email address and it is done. You can optionally send an email to your collaborators telling them the file is shared.
2. Folder organization works nicely. You can save your text documents in your own folders, then share them with others who can then organize them as they see fit. This accommodates people who have a difficult time with file and folder organization. Believe it or not, everybody does not like the abstract file and folder model used and taken for granted by computer geeks everywhere. With Google Docs you share the specific document, not the document-in-a-particular-location, so Collaborator B does not have to buy into Collaborator A's folder structure.
3. The default formatting used in the basic text "documents" translates nicely into most article submission and blog entry forms. MS Word notoriously adds characters that article and blog entry forms do not like.
